EUR/USD Mar. 7 – Capped by Strong Resistance

EUR/USD is just below important resistance as a new week brings worries that push the Euro higher, and concerns that weigh against it. Will it manage to break higher? Or will it turn around? Here’s a quick update on technicals, fundamentals and community trends.

EUR/USD Technicals

• Asian session:  Calm session. Euro/Dollar between 1.3950 to 1.40..
• Current range – 1.3950 – 1.4030.

• Further levels in both directions: Below 1.3950, 1.3860, 1.3760, 1.37, 1.3610, 1.35, 1.3440, 1.3334, 1.3267, 1.3180, 1.3080, 1.2970.
• Above:  1.4030, 1.4160, 1.4282, 1.44
• While the round number of 1.40 is eyed by many, real resistance is only at 1.4030.
• Key support is at 1.3860, which was the previous peak of 2011.

Euro/Dollar in narrow range under resistance – click on the graph to enlarge.

EUR/USD Fundamentals –

• 9:30 European Sentix Investor Confidence. Exp. 16.8 points.
• 12:00 ECB president Jean-Claude Trichet talks.
• 18:10 US FOMC member Richard Fisher talks.

* All times are GMT.

For more events later in the week, see the  EUR/USD forecast

EUR/USD Sentiment

• Middle East pushes oil higher, and dollar lower. In Saudi Arabia, the day of rage happens today instead of Friday. Together with the ongoing battles in the oil dispatching city of Ras Lanuf, WTI Crude oil is at $106 and the dollar suffers.
• US employment figures were good – unemployment dropped below 9% and it seems that the economy is gradually moving forward.
• Portugal Bailout – There are growing talks that Portugal will need to take a bailout, as yields are above 7% for too much time. Portugal denies, but the deadline is getting closer.
• The Irish people have spoken out – the government that signed the bailout plan has been kicked out and the new government will renegotiate the bailout program.

Currensee Community: 61% are long , 39% are short. These are 1455 open positions in real accounts trading this pair at the moment.